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Shortened Demand

A Shortened demand is issued on a non-personal legal entity is terms of section 123(1)(e)
of the Insolvency Act and is used
to establish apparent insolvency. It can only be issued when the sums due exceed the prescribed limit. Such a demand can not be
served on an individual - ie a sole trader.

The demand is ordinary sent by ordinary post, but also served by process servers (England) or Sheriff Officers (Scotland).
It is the date of service that starts the period of notice, sometimes as short as three days.

It is possible to start insolvency proceedings on expiry of the demand, but care must be taken in terms of any response as
this procedure relates solely to undisputed, liquid debts.

The content of this website is for general information only and should not be relied upon. It is not intended to be
construed as legal advice and should not be treated as a substitute for specific advice.